LANSING, MI (MPRN)-- Governor Rick Snyder says he approved Detroit’s bankruptcy filing because it became obvious there was no other way to fix the city’s finances and restore services to an acceptable level. As we hear from Michigan Public Radio’s Rick Pluta, the governor says it was, nevertheless, a difficult choice.
Governor Snyder says the largest municipal bankruptcy in U-S history may stand as a low point in the history of Michigan and Detroit. But he says creditors keep saying “no” to deals that will cost them money, and so bankruptcy became the only option left. He calls it a first step toward reversing 60 years of mismanagement.
“Enough is enough of the downward spiral of Detroit. Let’s move forward and upward in some constructive, positive fashion,” he says.
The governor says bankruptcy will ultimately offer creditors some assurances on how much they will be paid.
A federal judge still has to approve the request. Public employee unions could also make a last-ditch effort to block the proceedings.
For the Michigan Public Radio Network, I’m Rick Pluta in Lansing.